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Wednesday, 22 July 2020

Percentage of Family pension to Regular pension

I attach a table furnishing  the percentage of family pension to regular pension for all cadres at maximum of scale.
I got help from Mr C T Joshi in checking my calculations and resolving some errors.
The table reveals an interesting picture.
The very fact that the percentage varies for different generations and different cadres proves that family pension as it exists now is   anomalous.
It defies logic to determine family pension at a low percentage of last pay of the deceased retiree, when logically it should be 50% of the regular pension.Mostly wife of the deceased retiree is the family pensioner.Wife is usually referred to as the better half.She should not be treated worse by providing her much less than 50% of what her husband would have got had he been alive.
There is an urgent need to revisit the family pension formula and amend the Pension Rules.Pensioners' organisations need to take it up with LIC Management.
C H Mahadevan




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